Apogee Enterprises Inc (APOG)
Inventory turnover
| Mar 2, 2024 | Feb 25, 2023 | Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,049,810 | 1,105,420 | 1,039,820 | 955,084 | 1,068,480 |
| Inventory | US$ in thousands | 69,240 | 78,441 | 80,494 | 72,823 | 71,089 |
| Inventory turnover | 15.16 | 14.09 | 12.92 | 13.12 | 15.03 |
March 2, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,049,810K ÷ $69,240K
= 15.16
The inventory turnover ratio of Apogee Enterprises Inc has been consistently strong over the past five years, showing an increasing trend. The company's ability to turn over its inventory efficiently has improved from 13.12 times in 2021 to 15.16 times in 2024. This indicates that Apogee is managing its inventory effectively, selling and replacing its inventory multiple times within a year.
A high inventory turnover ratio signifies that the company is selling its products quickly, which can lead to reduced carrying costs and a lower risk of inventory obsolescence. This efficiency in managing inventory reflects positively on Apogee's operational performance and suggests effective inventory management practices in place.
Overall, the gradually increasing inventory turnover ratio of Apogee Enterprises Inc demonstrates a healthy trend and efficient management of inventory resources over the years, which can contribute to improving the company's overall financial performance.